Why nations Trade

Why Nations Trade

Word	Spanish Equivalent	English Meaning
Expertise	Habilidad	We admired the expertise with which he prepared the meal. I have no expertise in sewing/sewing expertise. She has considerable expertise in French history.
Surplus	Superavit	The world is now producing large food surpluses. We are unlikely to produce any surplus this year. The government has authorized the army to sell its surplus weapons.
Encourage	Estimular	We were encouraged to learn foreign languages at school. The council is encouraging the development of the property for both employment and recreation.
Raise	Aumentar	Would all those in favour please raise their hands? He raised the window and leaned out. Mary Quant was the first fashion designer to raise hemlines.
Labour	Mano de Obra	The car parts themselves are not expensive, it's the labour that costs the money. manual labour (= hard work using the hands)
Benefit	Beneficio	The discovery of oil brought many benefits to the town. One of the many benefits of foreign travel is learning how to cope with the unexpected. He's had the benefit of an expensive education and yet he continues to work as a waiter. I didn't get/derive (much) benefit from school. With the benefit of hindsight (= Helped by the knowledge since learned) it is easy for us to see where we went wrong.
Decline	Disminucion	His interest in the project declined after his wife died. The party's popularity has declined in the opinion polls. formal; The land declines sharply away from the house.
Retaliate	Vengarse	If someone insults you, don't retaliate as it only makes the situation worse. The demonstrators threw rocks at the police, who retaliated by firing blanks into the crowd. The terrorists retaliated against the government with a bomb attack.
Prevent	Prevenir	Label your suitcases to prevent confusion. [+ -ing verb] His disability prevents him (from) driving.
Restrict	Restricciones	To limit the movements or actions of someone, or to limit something and reduce its size or prevent it from increasing measures to restrict the sale of alcohol The government has restricted freedom of movement into and out of the country. Having small children really restricts your social life.
Customs	Aduana	A person whose job is to look inside travellers' bags to make certain they are not taking goods into a country without paying taxes
Delay	Retraso	[I or T]to make something happen at a later time than originally planned or expected My plane was delayed by an hour. Could we delay the meeting a few days? [+ -ing verb] I think we should delay deciding about this until next year. • [T]to cause someone or something to be slow or lateI was delayed by traffic. • [I]to not act quickly or immediatelyIf you delay now, the opportunity might be lost.

1. Find three (3) reasons given in the text for why nations trade.

A nation trades because it lacks the raw materials, climate, specialist labour, capital or technology needed to manufacture a particular good. Trade allows a greater variety of goods and services.


2. What are some of the advantage and disadvantages of protectionism?



Protectionism

Advantages of Protectionism

Protectionism occurs when one country reduces the level of its imports because of:

• Infant industries. If sunrise firms producing new-technology goods (eg computers) are to survive against established foreign producers then temporary tariffs or quotas may be needed.
• Unfair competition. Foreign firms may receive subsidies or other government benefits. They may be dumping (selling goods abroad at below cost price to capture a market).
• Balance of payments. Reducing imports improves the balance of trade.
• Strategic industries. To protect the manufacture of essential goods.
• Declining industries. To protect declining industries from creating further structural unemployment

Disadvantages of Protectionism

• Prevents countries enjoying the full benefits of international specialization and trade.
• Invites retaliation from foreign governments
• Protects inefficient home industries from foreign competition. Consumers pay more for inferior produce.

3. What is a tariff and what is a quota? Use the specialist dictionary for the definition.

Tariff: Is a charge or list of charges either for services or on goods entering a country.
Quota: Is a fixed, limited amount or number that is officially allowed.

What are the effects of tariffs and quotas on trade?

Effects of the Tariffs:

• raises the price of the import
• reduces the demand for imports;
• encourages demand for home-produced substitutes;

· raises revenue for the government.

Effects of the Quotas:

• raises the price of imports.
• reduces the volume of imports.
• encourages demand for domestically made substitutes.

4. What other protection techniques are mentioned in the text?

Other protection techniques:

• Administrative practices can discriminate against imports through customs delays or setting specifications met by domestic, but not foreign, producers.
• Exchange controls (currency restrictions) prevent domestic residents from acquiring sufficient foreign currency to pay for imports

5. Are these protectionist techniques seen in Venezuela?

I thing that some of this protectionist techniques that I am mention if applied in Venezuela because Venezuela is a big importer.